Our team members have a decade’s experience of providing defined benefit pension scheme employer covenant assessments. We offer clear and concise financial analysis to defined pension scheme trustees to enable them to understand the strength of employer companies and the risks associated with the covenant they offer to their schemes.

As well as performing such assessments to underpin the trustees’ selection of appropriate actuarial assumptions, we can support trustees in their funding negotiations with employers and their consideration of reasonably affordable contributions under the Pension Regulator’s guidance.

We also consider the impact of corporate changes on an employer covenant and advise trustees on appropriate mitigating actions. This advice is always pragmatic and realistic.

Defined Benefit Pension Scheme Employer Covenant Assessments

Case Study

Our team members have acted as longstanding adviser to a high profile Non-Associated Multi-Employer (“NAME”) scheme providing a constant sounding board on matters relating to the financial position of the relevant employers and reasonable actions for the trustees to take, balancing the expectations of the Pensions Regulator with the reasonable cash requirements of the businesses concerned.

Advice was given in relation to multiple changes of corporate structure at the employer companies and other events that had the potential to weaken the position of the pension scheme on the insolvency of the employer.

We also provided advice on how the trustees could reasonably and proportionally assess the covenant strength on a fund potentially connected to over 1000 different employer entities.

For further information regarding defined benefit pension scheme employer covenant assessments, get in touch Forensic@baldwinandco.co.uk or ring 029 2082 9000.